Federal Court Says First-Sale Doctrine Covers Software, Too 509
New10k writes "The US District Court in Seattle has rejected Autodesk's myriad arguments regarding its software licenses and found in favor of eBay seller Timothy S. Vernor. The ruling started by ruling that Vernor was within his rights to resell copies of AutoCAD Release 14 he got in an auction. Once the court settled the legitimacy of reselling, it used that ruling as a lens to dismiss all of Autodesk's various claims. More than once the court described Autodesk's arguments as 'specious' and 'conflicted.'" Autodesk managed to have Vernor's eBay account pulled, after he listed for sale copies of AutoCad 14. He sued Autodesk in response.
Re:What about the ebay account? (Score:5, Informative)
Likewise in Finland since a number of years (Score:5, Informative)
Re:Workaround (Score:3, Informative)
Re:This is going to get to the Supreme Court (Score:3, Informative)
there is NO SIGNIFICANCE to this ruling (Score:5, Informative)
Re:Likewise in Finland since a number of years (Score:5, Informative)
Re:Autodesk = a true evil empire (Score:5, Informative)
On top of that, upgrading almost never worked. It got to the point where an upgrade to Autocad meant loading up a new system image, then installing it first before anything else.
Re:First-Sale cuts both ways (Score:5, Informative)
See http://en.wikipedia.org/wiki/First-sale_doctrine [wikipedia.org]
The worst thing was ... (Score:2, Informative)
All this from spurious DMCA complaints when the guy wasn't copying anything. Here's a boxed, legitimate version of AutoCAD, a copy made by AutoCAD, for sale. In what bizarro world does copyright even apply to that situation?
By the usual analogy, it would be like Ford suing a used car dealer for selling used Ford cars on the grounds that Ford's copyright had been infringed. Huh?
At most it's a contract issue. And a dubious, shrink-wrapped contract at that. The DMCA is irrelevant.
Re:Workaround (Score:5, Informative)
Skirting this by saying the key allows you to create an account and that the account is non-transferable is bogus as long as the key can only be used to create only one account.
I did buy a "like new" copy of WoW on ebay a couple years ago. I was a bit put out when the key was rejected due to having already been used. After reading the EULA thoroughly (not that I agree to a unilateral after-purchase change of conditions), I argued with Blizzard about my non-working key. After talking with a lawyer friend, and him sending them a letter, they sent me a new key.
One of they key points in their EULA was the paragraph:
You may permanently transfer all of your rights and obligations under the License Agreement to another by physically transferring the original media (e.g., the CD-ROM or DVD you purchased), all original packaging, and all Manuals or other documentation distributed with the Game; provided, however, that you permanently delete all copies and installations of the Game in your possession or control
The key is part of the "other documentation" and must be transferred to the new owner. Preventing someone from using it just because they are not the original owner of it is contrary to the first-sale doctrine.
Furthermore, there is nothing in the EULA indicating any possibility that the key cannot be used by its rightful owner. The only place that is mentioned is the Terms of Use which are displayed when you go to use the key. Prohibiting subsequent owners from using the key completely destroys the intended use of the software, so should not be allowed as long as first-sale doctrine principals apply.
Re:First-Sale cuts both ways (Score:3, Informative)
Re:Workaround (Score:1, Informative)
Google's Attorney's Blog (Score:5, Informative)
Patry is Senior Copyright Counsel for Google.
Also what about Cisco routers and switches? (Score:4, Informative)
Re:First-Sale cuts both ways (Score:1, Informative)
If they are duplicating your material, then you have every right to sue them for infringement.
Re:First-Sale cuts both ways (Score:5, Informative)
Re:there is NO SIGNIFICANCE to this ruling (Score:1, Informative)
Precedent (Score:3, Informative)
Because they were hoping to set a precedent, that's why.
Same reason the RIAA backs out anytime one of their victims looks like he can put up a decent fight. Precedent is powerful.
The difference here being that Autodesk got their asses handed to them because they decided to see their illogical claim all the way through to a ruling. I'm sure they were hoping for a ruling in their favor so that future claims would be a rubber-stamp process.
Unfortunately for them, they lost. Surprise! Now the rubber stamp is in the hands of the consumers. You takes your chances and you rolls your dice, right?
Re:First-Sale cuts both ways (Score:2, Informative)
B*LLSH!T. There are exceptions for phono records and computer software, but otherwise, it is perfectly legal to rent copyrighted works. Do you think your local video store has a contract with all the movie studios?
It's funny that you have no clue what the heck you're talking about.
Re:First-Sale cuts both ways (Score:4, Informative)
Comment removed (Score:5, Informative)
Re:Likewise in Finland since a number of years (Score:4, Informative)
I think it's this one: http://www.finlex.fi/fi/oikeus/kko/kko/2003/20030088 [finlex.fi] (I don't have time to verify it, though).
A commentary on the case: Ostajalla oikeus myydä ostamansa tietokoneohjelman kappale edelleen — KKO:n ratkaisu levittämisoikeuden raukeamisesta [iprinfo.com] (Rough translation: "Buyer has right to resell the copy of a program he has bought - Supreme Court decision on the ending of distribution right").
All the companies involved were: Adobe Systems Incorporated, Autodesk Incorporated, Borland International Incorporated, Lotus Development Corporation, Microsoft Corporation, Novell Incorporated and Symantec Corporation.
Re:Not really adding anything important but... (Score:3, Informative)
And no, I am by no means a MS fanboy, just relating my real-life experiences with MS keys and hardware changes.
Re:First-Sale cuts both ways (Score:5, Informative)
This is exactly the sort of thing you can do under the first sale doctrine. First sale exhausts the distribution right. (except for software and music. See Section 109(b)(1) of the copyright act.) And, renting is distribution.
Re:Workaround (Score:5, Informative)
You can install WoW from your friend's disks, but when you go to create an account, it makes you enter your own CD key (plus the key for any expansion you want to activate). They could remove this requirement and it would indeed work as you describe, but for now Blizzard expects to get money for both the software and the account fees.
Re:Likewise in Finland since a number of years (Score:3, Informative)
Pfft. (Score:5, Informative)
The denial means that if Vernon's version of the facts are correct, he wins. The only question is whether his version of the facts are correct.
The case still goes on, but the opinion is good precedent for future cases with similar facts.
Re:Expect it to settle out of court (Score:3, Informative)
Re:Not really adding anything important but... (Score:5, Informative)
The laws covering computer programs [cornell.edu] Section 117 a 1 and 2 say that you can make a copy of the program as an essential step in using it (a fancy wording for installing it) and that you have to destroy or transfer the copy with the program is you sell it.
(a) Making of Additional Copy or Adaptation by Owner of Copy.-- Notwithstanding the provisions of section 106, it is not an infringement for the owner of a copy of a computer program to make or authorize the making of another copy or adaptation of that computer program provided:
(1) that such a new copy or adaptation is created as an essential step in the utilization of the computer program in conjunction with a machine and that it is used in no other manner, or
(2) that such new copy or adaptation is for archival purposes only and that all archival copies are destroyed in the event that continued possession of the computer program should cease to be rightful.
So in the case of the little guy, or any guy, keeping a copy of the software without the copyright holders permission is still a violation of copyright. With this ruling, no one can install a copy of software then sell the product on ebay without removing it from their computer first. The little guy needs to do nothing because he is still in as much control of his work as the copyright law originally allowed.
Re:Not really adding anything important but... (Score:5, Informative)
how about if the little guy writes software, and everyone who buys it goes straight to ebay and resells it, without uninstalling...
then the little guy is out of business...
Um, where are you getting the "without uninstalling"? That has nothing to do with this case or TFA.
This court case says that if I buy a copy of Windows Office and decide I don't like it, that I can uninstall it and sell it to someone else. Previously, software companies had been trying to claim that even after uninstalling the software and destroying every backup copy, you still couldn't sell the original CDs.
Re:First-Sale cuts both ways (Score:5, Informative)
Where I believe you are somewhat incorrect is that, in the catalog you saw, you saw prices higher on items not released for "general sell-thru". Recall back in pre-DVD days, many videos were available for rental only first (for a few months). This was because of the artificially high markup (around $100 a tape, circa 1998). Consumers simply wouldn't pay it. When the need for rental stores to buy 10 or 15 copies died down, it went to sell-thru. This was how the movie companies countered the rental market at the time. Interestingly, this was primarily brought about by the stores selling their used copied once the need to have a lot of copies of something died down. To the rental houses, the studios argued they had to make their money somehow, and it wasn't fair to sell a movie out for initial rental for just a few bucks and have it sold for nearly that much used.
Exceptions were made (think Disney or something that was thought to be a major-selling video, like "Titanic") - and for those that the consumer paid $19.95 for, the video stores paid about $15.
Agree: it did make for some fun explanations why that new release that baked in the hot (Michigan, in my case) sun in their car was $125 to replace, when they were used to spending $20 for a tape. It's all about the timing.
The germane point here is that they weren't paying a special licensing fee or anything to the studios (though, in later years, Blockbuster and Hollywood entered into "revenue sharing" agreements that allowed them to get a jillion copies of a movie) - they were simply paying an inflated price set by what was essentially a monopoly for a particular title: the studio.
Re:Autodesk = a true evil empire (Score:3, Informative)
Re:First-Sale cuts both ways (Score:3, Informative)
Public performance is a seperate right than renting, however. As an owner of a copyrighted work (except for phono recordings and computer software, I guess they have better lobbiests!), I can rent to whomever I please without permission of the copyright holder. Why you would confuse the two is a mystery.
Re:First-Sale cuts both ways (Score:3, Informative)
", the video store pays the studio a one-time fee of $2-$4 per videotape and then pays 40% of rental revenues. "
http://people.ischool.berkeley.edu/~hal/Papers/history/ [berkeley.edu]
Re:Workaround (Score:3, Informative)
Re:Expect it to settle out of court (Score:1, Informative)
Re:Workaround (Score:2, Informative)
Re:Workaround (Score:1, Informative)
Re:there is NO SIGNIFICANCE to this ruling (Score:4, Informative)
Not so new (Score:2, Informative)
Re:Workaround (Score:5, Informative)
Re:Psystar (Score:3, Informative)
Ah, but keep in mind, the software publisher is claiming not that you are buying a piece of software with which you can do whatever you want, but a license to use a piece of software. This decision says that that license is transferable. And first sale law already said you could make modifications and resell something.
Psystar is buying a license to install the software; they are doing so. They are then modifying the software, which is their right. They then resell the system, and responsibly transfer the license along with it. Reselling the system is within their legal rights; reselling the software has now been shown to be within their rights as well. Modifying the software is also within their rights. They are not representing the software as unmodified, so they are not committing a breach of trademark law. I'm not clear where you think the violation lies.
Re:First-Sale cuts both ways (Score:3, Informative)
This wasn't hard to find. [laughingloon.com]
Re:Workaround.. PLU... (Score:4, Informative)
Basically, the PLU, or portable license utility, is installed with every protected Autodesk product. Well, at least with AutoCAD. After you register and authorize your licensed copy (electronically or over the phone, etc), the PLU ties that license to that machine. If you install and try to run another instance of the software on another machine, or even reinstall on your own after a total disk wipe, you'll have to re-register or at least get re-authorization.
http://discussion.autodesk.com/thread.jspa?threadID=608297 [autodesk.com]
http://discussion.autodesk.com/thread.jspa?threadID=478591 [autodesk.com]
http://www.autodesk.co.uk/adsk/servlet/item?siteID=452932&id=6005296&preview=1 [autodesk.co.uk]
http://www.cvis.com/MP/Using_the_Portable_License_Utility.htm [cvis.com]
http://www.tovna.com/main/softlock.htm [tovna.com]
http://www.cadforum.cz/cadforum_en/qaID.asp?tip=2396 [cadforum.cz]
When you want to legally for a day or a week or whatever transfer the user activity from one machine to another, you activate the PLU, specify the target machine to which the license is to be sent. When done, do the same on the current machine to get the license back to your original machine. If you botch it, you've got to call Autodesk. Botch it TOO many times, they'll forever deny re-authorization for that particular license.
If confused, contact Autodesk, or go visit the AUGI and other sites.
I don't particularly have a problem with the PLU. But, if the PLU is used to deprive resale by legitimate license holders who want to dispose of the product and maybe use a competing product, then "locking in" the user is heinous. I use AutoCAD for WORK. But, for my hobby, I use TurboCAD and Punch! ViaCAD and marine products meant for ship design. AutoCAD 2009 and even 08 have some nifty features, but about all I don't like about TC & VC is their pseudo-command-line is limited to single strokes, not multiple characters. That makes me think AutoCAD has some "patent" lock or threat against other CAD companies attacking AD on the command line. If that is TRUE, then that'll be yet another reason for me to continue using the smaller guy for my non-work activities.
Re:First-Sale cuts both ways (Score:3, Informative)
That was an example of Blockbuster's contractual arrangement with "content providers" so they could do their "guaranteed in stock" promotion without having to wait for distributors to have an item. By getting their copies directly from the content providers, they didn't need to hope that they could get the amount of copies they needed to back up their promotion without giving away lots of free rentals. In exchange, the content provider got some revenue from the arrangement. It is not a description of whether or not Blockbuster has the right to buy a copy wherever they want and then rent it.
Reading for context is a useful skill.
Re:First-Sale cuts both ways (Score:3, Informative)
Re:there is NO SIGNIFICANCE to this ruling (Score:1, Informative)
While the case is proceeding, the denial of summary judgment itself has implications for first sale and safe harbors. The summary judgment states that the transactions are legal.
For info from the guy who wrote the book on copyright, see William Patry's blog entry.
http://williampatry.blogspot.com/2008/05/first-sale-victory-in-vernor.html
Re:First-Sale cuts both ways (Score:2, Informative)
For more clarity, The actual cite USC Title17, Chapter 1, Section 109 [bitlaw.com] describes the situation where the owner of a copy of a lawfully created work may dispose of it, without the consent of the copyright owner. "the owner of a particular copy
This is a clear exemption from the blanket rights granted to copyright holders, under section 106(c) [cornell.edu]. Though 106(c) gives copyright owners "The exclusive rights to
The rights granted to owners of a copy, but not the copyright, to dispose of a copy by sale or otherwise are established. Rental, leasing and loaning are implicit in the "or otherwise" The rights do not extend to renting, loaning, or leasing computer programs or sound recordings because of 109(a)(1)(A).
IANAL, but that's the facts.
Re:Troll?? (Score:3, Informative)
I'd say AM is very, very far from being 'dead'.
(here = Australia)
Re:Not really adding anything important but... (Score:2, Informative)
MatLab is the same, 'cept funner 'cause it's got it's own proprietary language and I had two classes that used it. And then there's this horrible suite for psych experiments called Presentation-that's what the person running the experiment was using, and had no authority to fight him on it. Of course I can do almost anything I need MatLab or Presentation for in python, but that requires forcing people to switch and learn new techs.
Re:No lawyer (Score:3, Informative)
Re:Not really adding anything important but... (Score:3, Informative)
Re:Workaround (Score:3, Informative)
Understanding Software Licensing "scam" (Score:0, Informative)
1. The whole software licensing scam is about companies misusing "work on hire" and "copyright" laws.
2. Companies hire people to write software on work on hire basis and then sell the software on copyright basis.
3. The reality is "work on hire" is for internal use of the company only, work on hire does not automatically grant copyright of work produced on hire.
4. Copyright can be obtained only by paying the original author of the work "royalty" for each copy of the work.
5. To overturn software licensing all that someone has to do is prove that software publisher is not paying royalty for each copy to the software authors.
6. Where there is huge profits there is always a "scam" behind it!
Re:Workaround (Score:2, Informative)
You said it right here (assume that the license says you cannot transfer software):
Still, I'll be honest: my response was partially targeted at you, and partially because I was getting frustrated at the constant blubbering and complaining about what the law is when it makes perfect sense: you sign an agreement, you are bound to the agreement (less a few exceptions such as unconscionability).
I clearly stated I didn't RTFA. However, not all EULAs give this right. In fact, there are plenty that do not.
Regarding returning the software if you don't agree:
I wasn't aware you were such an authority on what the law was. Considering that you freely admitted that:
I'd cite you the case law that says otherwise, but since this is licensing law we're talking about, that's 50 states' worth of case law I'd have to cite.
Basically, it comes down like this: the agreement is finalized when the consumer accepts or rejects the license agreement. This is similar to a long history of contracts and licenses being taken care of via post mail; clickwrap and shrinkwrap licenses are not new constructions. I'll have to email one of my classmates: his seminar paper was written analyzing clickwrap, browsewrap, and shrinkwrap licenses. Clickwrap and shrinkwrap licenses are actually pretty uncontroversial in the legal world. Browsewrap is more contentious than the other two. I could post some of his discussion perhaps.
In any case, until you click "accept," the deal is not finalized, and you have the right to go to the other licensor and demand your money back. The licensor has to give it to you. If not, they have committed theft.
The requirements you're implying should be imposed on contract and licensing law with these statements are staggering. You're basically demanding that all agreements be completely performed in person simultaneously or else they are unconscionable.
You're saying that stores should be required to show the licenses to potential licensees before they purchase software. Do you know how frigging unworkable that is? Good lord, almost every freaking consumer product you buy now has licenses included. Can you imagine Christmastime, stores full of people trying to read agreeements before they can buy. It's even worse then, because if they're in a hurry, they can either (1) wait hours to read and buy, or (2) buy and absolutely and irrevocably waive their right to refuse the agreement later. Hell, the current regime still permits post-purchase refusal and refund, but what you're suggesting would make it worse for the average consumer.
Finally, the time of the sale is not the end of the license formation process, and it does not have to be. Again, how do you think people in faraway lands have done business for decades? By mailing contracts back and forth, and including partial performance as part of the deal. You buying the software is partial performance of the agreement. Later, when you click "agree," that's the rest of the performance. The agreement is not finalized until you've fully performed. It's basic, black-letter contract law.
Re:Workaround (Score:5, Informative)
So first sale doctrine under copyright law is a statutory law hence you can not write a civil condition of contract that will infringe that law, you can of course still do it but, when challenged in court that contract can then be voided.
When it comes to computer games it does make it very interesting fro a bunch of companies that only allow one of a registration of the game or a limited number of installation possible, as that does infringe upon a person right to sell the game when they no longer want it.
Currently the real problem is that government consumer protection authorities are completely failing in their duty of responsibility in ensuring a lot of this crap is nipped in the bud, in actively prosecuting companies that write criminally deficient contracts. Corrupt governments pandering to corporate interest have stripped away all power from consumer protections authorities, so that corporations can write criminal contracts and then force consumers who want to challenge them, to spend large amounts of money in court in order to do so.
Re:Workaround (Score:3, Informative)
They have not "waived their right to sue" or anything like that. Patent law states that certain acts require advance written permission, and a patent licence is exactly that permission. Their right to sue never existed in the first place.
Re:Not really adding anything important but... (Score:5, Informative)
NO ONE* is designing in 2D anymore. Creating isometric and orthogonal views? What a complete waste of time.
You must be one of the idiot engineers that I have to deal with on a daily basis that thinks I can pull GD/T out of my ass from a 3D model.......on a 2D piece of paper. As a machinist and engineering student, I see all this idiocy all the fucking time. EVERYTHING you design has to be manufactured, and the most important part of the manufacturing process is the measurement, the tools for such making up 3/4 of a machinist's toolbox. What you should be saying is that nobody is NEEDLESSLY designing in 3D. The majority of parts you will see as an ME will be rather simple, and much easier to design in a 2D environment, and MOST importantly, easy to read by the manufacturing staff that is going to fabricate them. Yes, there are contours and surfs that need to be designed in a 3D environment, but that is a tiny minority. The most prevalent CAD/CAM package on the market is primarily 2D with a robust 3D package that can be used (albeit painstakingly) to render the odd surf here and there.
Isometric and orthogonal are there for a reason, they're going to be the basis from which the part is manufactured. So unless that fuzzy-bunny-lala-land in your head comes to fruition any time soon, you're going to need them. At least, if you've even learned basic blue-print reading. The most common recurring problem I've seen with prototype and small run manufacturing is that the engineer isn't even drawing up the blueprint. Nine times out of ten he doesn't even know how. He designs the part and some poor CAD-Tech transfers it to a block blank, inevitably making mistakes along the way, and %90 of the time making the part more expensive by virtue of setting tight tolerances where they don't need to be. The %10 of the time the ME does know basic blueprint reading, he still makes the part needlessly expensive because he never spent any time doing assembly, and thinks that he needs bolt hole locations within
This "New-School" elitism of yours is the reason a kid like me--who is working the old-school to get into the new-school--is going to be your boss, making twice your salary, at half your age. Old technology is not bad as long as it's proven.
Re:Not really adding anything important but... (Score:4, Informative)
On a whim I took an architecture class and learned to use a mayline and paper/pen/pencils to do the same 2D tricks I had done in Acad and Vellum. Weirdly enough, my first real engineering position was at a shop that used hand drawings with a mayline. Productivity was low, but very few mistakes were made.
I later worked in a Pro/E shop and designed plastic injection molded parts, so almost everything was 3D. We still needed 2D drawings for documentation and there were a few projects with machinining and the intent still had to be put into the drawings.
It'll be a long time before 2D drawings are eliminated because they are the only open document format for making engineered parts. And they do a great job of conveying intent and contracting the job. That said, I really like parametric design, because you can update the location of a bolt hole in the assembly and it goes all the way through to the 2D drawing. What used to take an hour or a day, now take seconds.
Knowing how to use your tools is just as important as having them. 3D programs are really great at increasing productivity, but if all you are doing is speeding up the design of something broken and expensive, then you are just getting nowhere faster.
Re:Not really adding anything important but... (Score:3, Informative)
See this link [winprog.org] for more info.
Re:Not really adding anything important but... (Score:2, Informative)